S T A T E O F N E W Y O R K
________________________________________________________________________
7089
2019-2020 Regular Sessions
I N A S S E M B L Y
April 5, 2019
___________
Introduced by M. of A. ORTIZ -- read once and referred to the Committee
on Ways and Means
AN ACT to amend the tax law, in relation to the imposition of a corpo-
rate welfare tax; and to amend the labor law, in relation to prohibit-
ing discrimination against individuals receiving federal benefits
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. The tax law is amended by adding a new article 9-B to read
as follows:
ARTICLE 9-B
CORPORATE WELFARE TAX
SECTION 230. DEFINITIONS.
231. IMPOSITION OF TAX.
232. RETURNS AND PAYMENT OF TAX.
233. DEPOSIT AND DISPOSITION OF REVENUE.
§ 230. DEFINITIONS. FOR PURPOSES OF THIS ARTICLE, THE TERM:
1. "LARGE EMPLOYER" SHALL MEAN, WITH RESPECT TO A CALENDAR YEAR, AN
EMPLOYER WHO EMPLOYED AN AVERAGE OF AT LEAST FIVE HUNDRED EMPLOYEES ON
BUSINESS DAYS DURING THE PRECEDING CALENDAR YEAR AND HAS AN OFFICER,
AGENT, TRUSTEE OR REPRESENTATIVE WITHIN THE STATE. FOR THE PURPOSES OF
DETERMINING EMPLOYER SIZE:
(A) ALL PERSONS TREATED AS A SINGLE EMPLOYER UNDER SUBSECTIONS (B),
(C), (M), OR (O) OF SECTION FOUR HUNDRED FOURTEEN OF THE INTERNAL REVEN-
UE CODE OF 1986 SHALL BE TREATED AS 1 EMPLOYER.
(B) IN THE CASE OF AN EMPLOYER WHICH WAS NOT IN EXISTENCE THROUGHOUT
THE PRECEDING CALENDAR YEAR, THE DETERMINATION OF WHETHER SUCH EMPLOYER
IS A LARGE EMPLOYER SHALL BE BASED ON THE AVERAGE NUMBER OF EMPLOYEES
THAT IT IS REASONABLY EXPECTED SUCH EMPLOYER WILL EMPLOY ON BUSINESS
DAYS IN THE CURRENT CALENDAR YEAR AS DETERMINED BY THE COMMISSIONER.
(C) ANY REFERENCE IN THIS ARTICLE TO AN EMPLOYER SHALL INCLUDE A
REFERENCE TO ANY PREDECESSOR OF SUCH EMPLOYER.
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD10717-01-9
A. 7089 2
2. "QUALIFIED EMPLOYEE BENEFITS" SHALL MEAN, WITH RESPECT TO A PERSON
FOR A TAXABLE YEAR, THE SUM OF THE QUALIFIED FEDERAL BENEFITS RECEIVED
BY INDIVIDUALS WHO ARE EMPLOYEES OF SUCH PERSON FOR SUCH TAXABLE YEAR.
3. "QUALIFIED FEDERAL BENEFITS" SHALL MEAN, WITH RESPECT TO AN INDI-
VIDUAL, THE FOLLOWING:
(A) THE DOLLAR VALUE OF SUPPLEMENTAL NUTRITION ASSISTANCE FOR WHICH
THE HOUSEHOLD, AS DEFINED IN SECTION 3(M) OF THE FOOD AND NUTRITION ACT
OF 2008, THAT INCLUDES SUCH INDIVIDUAL IS ELIGIBLE;
(B) THE DOLLAR VALUE OF MEALS THAT SUCH INDIVIDUAL OR DEPENDENTS OF
SUCH INDIVIDUAL ARE ELIGIBLE FOR UNDER THE SCHOOL LUNCH PROGRAM UNDER
THE RICHARD B. RUSSELL NATIONAL SCHOOL LUNCH ACT AND THE SCHOOL BREAK-
FAST PROGRAM UNDER SECTION FOUR OF THE CHILD NUTRITION ACT OF 1966;
(C) THE AGGREGATE AMOUNT OF THE MONTHLY ASSISTANCE PAYMENTS FOR RENTAL
OF A DWELLING UNIT THAT THE HOUSEHOLD OF SUCH INDIVIDUAL IS A MEMBER OF
IS ELIGIBLE TO HAVE MADE ON ITS BEHALF PURSUANT TO SECTION EIGHT OF THE
UNITED STATES HOUSING ACT OF 1937; AND
(D) THE AMOUNT OF PAYMENTS MADE UNDER SECTION 1903 OF THE SOCIAL SECU-
RITY ACT WITH RESPECT TO EXPENDITURES MADE BY A STATE UNDER A STATE
MEDICAID PLAN UNDER TITLE XIX OF SUCH ACT, OR A WAIVER OF SUCH PLAN, FOR
MEDICAL ASSISTANCE FOR SUCH INDIVIDUAL OR FOR DEPENDENTS OF SUCH INDI-
VIDUAL.
4. "EMPLOYEE" SHALL MEAN:
(A) ANY FULL-TIME OR PART-TIME EMPLOYEE;
(B) ANY INDIVIDUAL WHO IS A FULL-TIME OR PART-TIME INDEPENDENT
CONTRACTOR, INCLUDING ANY EMPLOYEE OF SUCH INDEPENDENT CONTRACTOR, AND
PROVIDES SERVICES TO THE EMPLOYER, UNLESS:
(I) THE INDIVIDUAL IS FREE FROM CONTROL AND DIRECTION IN CONNECTION
WITH THE PERFORMANCE OF THE SERVICE, BOTH UNDER THE CONTRACT FOR THE
PERFORMANCE OF SERVICE AND IN FACT;
(II) THE SERVICE IS PERFORMED OUTSIDE THE USUAL COURSE OF THE BUSINESS
OF THE EMPLOYER; AND
(III) THE INDIVIDUAL IS CUSTOMARILY ENGAGED IN AN INDEPENDENTLY ESTAB-
LISHED TRADE, OCCUPATION, PROFESSION, OR BUSINESS OF THE SAME NATURE AS
THAT INVOLVED IN THE SERVICE PERFORMED; AND
(C) ANY INDIVIDUAL WHO IS A FULL-TIME OR PART-TIME JOINT EMPLOYEE,
PROVIDED THAT THE EMPLOYER POSSESSES, RESERVES, OR EXERCISES SUFFICIENT
DIRECT OR INDIRECT CONTROL OVER THE ESSENTIAL TERMS AND CONDITIONS OF
EMPLOYMENT OF SUCH EMPLOYEE.
§ 231. IMPOSITION OF TAX. NOTWITHSTANDING ANY OTHER PROVISION OF THIS
CHAPTER, OR OF ANY OTHER LAW, FOR TAXABLE YEARS BEGINNING ON AND AFTER
JANUARY FIRST, TWO THOUSAND TWENTY, AN ANNUAL TAX IS HEREBY IMPOSED ON
EVERY TAXPAYER WHO IS A LARGE EMPLOYER EQUAL TO ONE HUNDRED PERCENT OF
THE QUALIFIED EMPLOYEE BENEFITS WITH RESPECT TO SUCH TAXPAYER FOR SUCH
TAXABLE YEAR.
§ 232. RETURNS AND PAYMENT OF TAX. 1. EVERY TAXPAYER SUBJECT TO TAX
UNDER THIS ARTICLE SHALL, ON OR BEFORE THE FIFTEENTH DAY OF THE FIFTH
MONTH FOLLOWING THE CLOSE OF EACH OF ITS TAXABLE YEARS, MAKE AND FILE A
RETURN WITH THE TAX COMMISSION SETTING FORTH SUCH INFORMATION AS THE TAX
COMMISSION MAY PRESCRIBE. EVERY TAXPAYER WHICH CEASES TO BE SUBJECT TO
THE TAX IMPOSED BY THIS ARTICLE SHALL MAKE AND FILE A RETURN WITH THE
TAX COMMISSION ON THE DATE OF SUCH CESSATION, OR AT SUCH OTHER TIME
WHICH THE TAX COMMISSION MAY REQUIRE, COVERING EACH TAXABLE YEAR OR
PERIOD FOR WHICH NO RETURN WAS THERETOFORE FILED, SETTING FORTH SUCH
INFORMATION AS THE TAX COMMISSION MAY REQUIRE. EVERY TAXPAYER SHALL ALSO
FILE SUCH OTHER RETURNS AND FURNISH SUCH OTHER FACTS AND INFORMATION AS
THE TAX COMMISSION MAY REQUIRE IN THE ADMINISTRATION OF THIS ARTICLE.
A. 7089 3
2. THE TAX IMPOSED BY SECTION TWO HUNDRED THIRTY-ONE OF THIS ARTICLE
SHALL BE PAYABLE TO THE TAX COMMISSION IN FULL AT THE TIME THE RETURN IS
REQUIRED TO BE FILED. SUCH TAX IMPOSED ON ANY TAXPAYER WHICH CEASES TO
BE SUBJECT TO THE TAX IMPOSED BY THIS ARTICLE SHALL BE PAYABLE TO THE
TAX COMMISSION AT THE TIME THE RETURN IS REQUIRED TO BE FILED AND ALL
OTHER TAXES OF ANY SUCH TAXPAYER, WHICH PURSUANT TO THE PROVISIONS OF
THIS SECTION WOULD OTHERWISE BE PAYABLE SUBSEQUENT TO THE TIME SUCH
RETURN IS REQUIRED TO BE FILED, SHALL NEVERTHELESS BE PAYABLE AT SUCH
TIME.
3. THE TAX COMMISSION MAY GRANT A REASONABLE EXTENSION OF TIME FOR
FILING A RETURN OR FOR PAYMENT OF A TAX IMPOSED BY THIS ARTICLE UNDER
SUCH CONDITIONS AS IT DEEMS JUST AND PROPER.
§ 233. DEPOSIT AND DISPOSITION OF REVENUE. ALL TAXES, INTEREST AND
PENALTIES COLLECTED OR RECEIVED BY THE TAX COMMISSION UNDER THIS ARTICLE
SHALL BE DEPOSITED AND DISPOSED OF PURSUANT TO THE PROVISIONS OF SECTION
ONE HUNDRED SEVENTY-ONE-A OF THIS CHAPTER.
§ 2. The labor law is amended by adding a new section 215-d to read as
follows:
§ 215-D. PROTECTION OF INDIVIDUALS RECEIVING FEDERAL BENEFITS. NO
EMPLOYER, PUBLIC OR PRIVATE, OR SUCH EMPLOYER'S DULY AUTHORIZED AGENT
SHALL MAKE INQUIRIES OF AN APPLICANT FOR EMPLOYMENT, OR OTHERWISE SEEK
INFORMATION ABOUT SUCH AN APPLICANT, INCLUDING THROUGH THE USE OF ANY
FORM OR APPLICATION, RELATING TO WHETHER SUCH APPLICANT RECEIVES FEDERAL
BENEFITS.
§ 3. This act shall take effect immediately.